Chart of the day

Where do we stand fundamentally?

Oil prices have shown volatility, with a recent decline following a rally. Brent crude futures settled at $76.30 per barrel, while WTI crude oil futures settled at $73.56 per barrel. This came after a period of market optimism driven by technical signals and supply concerns but was tempered by bearish economic news from key markets like the U.S. and Germany. Saudi Aramco raised crude prices for Asian buyers, signaling a demand increase, although the broader market sentiment remains mixed with concerns about oversupply.

Oil is testing 75.20 pivot resistance for the upside/downside. My KNOWPO trading system indicates a good low-risk short trade here, as I expect a reversal downside to continue further in a long-term consolidation second wave. A rejection from here and a breakout below 70 are needed for that.

A break above 75.20 will invalidate the downside reversal and lead to a reversal higher.

_{You can take a short trade entry with a stop loss above 78 to target 62.}